To pay off IVA early to buy a house

[Sicksicksick9]

Hi, not sure where to have put this but me and my partner are wanting to buy a house. He has a CCJ due to an ex not pay rent on a house he’d moved out of but was on the tenancy agreement however he’s really good with money and we’ve both been able to save a decent deposit between us. However I have an IVA ( I know not looking good for either of us) my IVA has 22 months left and I owe £2186.
we’ve looked and it looks like he’d probably get accepted on a high interest lender but I just wouldn’t with an IVA. Do you think if I paid my IVA off now in march/April time we’d both get accepted together or not? Obviously not with a high street lender. Or should I just let it run its course pay half a deposit and not be on the mortgage help!!

You need to talk to your IVA provider. There will be implications in terms of fees for early settlement, getting creditor agreement etc.

The IVA remains in your credit record for 6years from the date you finish paying it. This will affect your access to credit for that period.

You need to get independent financial advice, I can’t imagine a mainstream lender would touch you, so you will need help finding a product that works for you. The mortgage company will ask your partner who he lives with and what (if any) interest they have in the property. He would need to tell them about you if you are contributing to the deposit etc as it complicates things if they need to repossess (and there is a greater likelihood of this given your credit histories)

The IVA will be on your credit file for 6 years from the date that it was approved, regardless of if you settle it now, or let it run its course.

I would say almost all high street lenders won’t consider giving you a mortgage, but you could work with a broker to see if there is any specialist lenders who would consider you.

If you're able to save towards 'a decent deposit' and your remaining IVA is only just over £2k, then it's definitely worth asking for a settlement figure to pay it off now rather than stringing it out for another 2 years.

You'll probably also get a half decent mortgage deal from a specialist broker. I remortgaged out of an IVA years ago and the rate was not even 1% more than standard rates.